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Responsible supply chain management

The Red Eléctrica Group undertakes the responsible management of its value chain as a sustainability priority, starting with our own people all the way through to our suppliers and customers.

Our suppliers constitute a key stakeholder group for the Company and, therefore, we believe it is necessary to carry out a sustainable management of our supply chain, promoting responsible practices and applying sustainability criteria in all supply chain processes. All of this is reflected in our Corporate Responsibility Policy and as one of the priorities defined in our 2030 Sustainability Commitment.Said commitment has been designed taking into account that the priorities and actions of our company contribute significantly to the achievement of the Sustainable Development Goals.

Red Eléctrica has a responsible supply chain management model that is managed based on the principles of non-discrimination, mutual recognition, proportionality, equal treatment and transparency, and follows the guiding principles laid down in a framework of legislative directives and internal Company codes, policies and regulations.

Our responsible supply chain management model

Framework of the model

Levers for ongoing improvement

Sustainable management pillars

Directive 2014/25/EU and Law 31/2007

The Group’s Code of Ethics

Supplier Code of Conduct

Corporate Responsibility Policy

Procurement Policy

Guide for the Prevention of Corruption

Internal Regulation

The Group’s strategic plan

Human Resources Master Plan

Procurement Plan

Audits and assessments

Sustainability Plan

Satisfaction surveys

Definition of objectives and projects

Continuous search for the lowest expected cost for the Company

Transparency and the separation of functions within the management processes

Ethical management and development of suppliers and subcontractors

Minimisation of the risk associated with the procurement processes

Extending sustainability principles throughout the supply chain

The Red Eléctrica Group extends its commitment to sustainability to all links in its value chain and has an express commitment to the responsible management of the supply chain, which includes the requirement that its suppliers take on the Group’s principles, priorities, strategy and objective in terms of sustainability. Furthermore, it pursues to convey the importance and active role each supplier plays in the Group's commitment to sustainability, as well as the importance of having everyone pulling in the same direction.

Red Eléctrica voluntarily adheres to various initiatives and professional associations that allow their commitment to sustainability to be strengthened and extended to its to suppliers, noteworthy among these initiatives, is its pledge to the principles of the United Nations Global Compact United Nations Global Compact.

As a company, we continue to focus on the areas of occupational health and safety, the environment and the respect for human rights. The Company monitors the accident severity and frequency ratio of its contractors and is implementing measures to guarantee the safety of all the people who carry out their activity in our facilities..

Within the 2030 Sustainability Commitment, our Climate Change Plan contains a specific objective related to the reduction of emissions associated with the supply chain (Scope 3) and the involvement of our suppliers in Red Eléctrica's commitments. As a first step, we have developed a methodology for the measurement of emissions associated with the supply chain and will continue to make progress in the development of a work methodology with our suppliers that is aimed at reducing emissions.

In addition, the Company continues conducting social audits in order to verify correct compliance with the Supplier Code of Conduct.

Red Eléctrica has made a guide available to all of its suppliers to help them incorporate sustainable aspects into their business management.